UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
FOR THE QUARTERLY PERIOD ENDED
OR
FOR THE TRANSITION PERIOD FROM TO
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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As of May 6, 2022, the registrant had
AIRGAIN, INC.
Form 10-Q
For the Quarter Ended March 31, 2022
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PART I. FINANCIAL INFORMATION |
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Item 1. Condensed Consolidated Financial Statements (Unaudited) |
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Condensed Consolidated Statements of Comprehensive Income (Loss) |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures about Market Risk |
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PART II. OTHER INFORMATION |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Airgain, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
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March 31, 2022 |
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December 31, 2021 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
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$ |
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Trade accounts receivable, net |
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Inventory |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Leased right-of-use assets |
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Goodwill |
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Intangible assets, net |
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Other assets |
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Total assets |
$ |
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$ |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
$ |
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$ |
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Accrued compensation |
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Accrued liabilities and other |
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Short-term lease liabilities |
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Deferred purchase price liabilities |
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Total current liabilities |
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Deferred tax liability |
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Long-term lease liabilities |
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Total liabilities |
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Stockholders’ equity: |
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Common stock and additional paid-in capital, par value $ |
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Treasury stock, at cost; |
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Accumulated deficit |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ |
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$ |
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See accompanying notes.
3
Airgain, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
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Three months ended March 31, |
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2022 |
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2021 |
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Sales |
$ |
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$ |
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Cost of goods sold |
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Gross profit |
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Operating expenses: |
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Research and development |
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Sales and marketing |
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General and administrative |
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Total operating expenses |
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Loss from operations |
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Other (income) expense: |
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Interest income, net |
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Other expense |
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Total other (income) expense |
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Loss before income taxes |
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Provision (benefit) for income taxes |
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( |
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Net income (loss) |
$ |
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$ |
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Net income (loss) per share: |
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Basic |
$ |
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$ |
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Diluted |
$ |
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$ |
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Weighted average shares used in calculating income (loss) per share: |
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Basic |
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Diluted |
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See accompanying notes.
4
Airgain, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
(Unaudited)
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Three months ended March 31, |
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2022 |
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2021 |
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Net income (loss) |
$ |
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$ |
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Unrealized gain (loss) on available-for-sale securities, net of deferred taxes |
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Comprehensive income (loss) |
$ |
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$ |
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See accompanying notes.
5
Airgain, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(In thousands)
(Unaudited)
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Three months ended March 31, |
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2022 |
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2021 |
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Total stockholders' equity, beginning balance |
$ |
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$ |
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Common stock and additional paid-in capital: |
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Balance at beginning of period |
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Stock-based compensation |
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Replacement awards issued in relation to acquisition |
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Issuance of shares for stock purchase plan |
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Balance at end of period |
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Treasury stock: |
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Balance at beginning of period |
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Repurchases of common stock |
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Balance at end of period |
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Accumulated deficit: |
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Balance at beginning of period |
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Net income (loss) |
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Balance at end of period |
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Total stockholders' equity, ending balance |
$ |
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$ |
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See accompanying notes.
6
Airgain, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
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Three months ended March 31, |
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2022 |
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2021 |
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Cash flows from operating activities: |
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Net income (loss) |
$ |
( |
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$ |
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Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
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Depreciation |
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Impairment of fixed assets |
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Amortization of intangible assets |
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Stock-based compensation |
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Deferred tax liability |
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( |
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Changes in operating assets and liabilities: |
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Trade accounts receivable |
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( |
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Inventory |
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Prepaid expenses and other current assets |
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( |
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( |
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Other assets |
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Accounts payable |
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Accrued compensation |
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( |
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Accrued liabilities and other |
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Lease liabilities |
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Net cash provided by (used in) operating activities |
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Cash flows from investing activities: |
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Cash paid for acquisition, net of cash acquired |
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( |
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Purchases of property and equipment |
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( |
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( |
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Net cash used in investing activities |
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( |
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Cash flows from financing activities: |
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Proceeds from issuance of common stock, net |
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Net cash provided by financing activities |
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Net increase (decrease) in cash, cash equivalents and restricted cash |
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( |
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Cash, cash equivalents, and restricted cash; beginning of period |
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Cash, cash equivalents, and restricted cash; end of period |
$ |
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$ |
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Supplemental disclosure of cash flow information: |
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Taxes paid |
$ |
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$ |
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Supplemental disclosure of non-cash investing and financing activities: |
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Right-of-use assets recorded upon adoption of ASC 842 |
$ |
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$ |
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Leased liabilities recorded upon adoption of ASC 842 |
$ |
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$ |
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Operating lease liabilities resulting from right-of-use assets |
$ |
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$ |
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Accrual of property and equipment |
$ |
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$ |
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Cash and cash equivalents |
$ |
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$ |
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Restricted cash included in current and other assets |
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Total cash, cash equivalents, and restricted cash |
$ |
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$ |
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See accompanying notes.
7
Airgain, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Description of Business and Basis of Presentation
Description of Business
Airgain, Inc. (the Company) was incorporated in the State of California on March 20, 1995; and reincorporated in the State of Delaware on August 17, 2016. The Company is a leading provider of advanced wireless connectivity solutions and technologies used to enable high performance networking across a broad range of devices and markets, including consumer, enterprise, and automotive. The Company’s headquarters is in San Diego, California.
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, from which the balance sheet information herein was derived. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and investments have been eliminated in consolidation.
Segment Information
The Company’s operations are located primarily in the United States and most of its assets are located in San Diego, California, and Plymouth, Minnesota.
The Company operates in
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications
Certain amounts in the prior year financial statements have been reclassified to conform to the presentation of the current year financial statements including the reclassification of sales and marketing expenses in the Company's consolidated statement of operations as well as reclassification of sales channel and geographic location in the disaggregated revenue disclosures in Note 18.
Note 2. Summary of Significant Accounting Policies
During the three months ended March 31, 2022, there have been no material changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Restricted Cash
As of March 31, 2022 and December 31, 2021, the Company had $
8
Trade Accounts Receivable
Trade accounts receivable is adjusted for all known uncollectible accounts. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. Accounts are written off once all collection efforts have been exhausted. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful.
Inventory
The majority of the Company’s products are manufactured by third parties that retain ownership of the inventory until title is transferred to the customer at the shipping point. In some situations, the Company retains ownership of inventory which is held in third party contract manufacturing facilities. In certain instances, shipping terms are delivery-at-place and the Company is responsible for arranging transportation and delivery of goods ready for unloading at the named place. In those instances, the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying consolidated balance sheets. In February 2022, the Company announced that it was closing its facility located in Scottsdale, Arizona where certain of its products were previously manufactured.
Inventory is stated at the lower of cost or net realizable value. For items manufactured by the Company, cost is determined using the weighted average cost method. For items manufactured by third parties, cost is determined using the first-in, first-out method (FIFO). Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Provisions for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience and were $
Business Combinations
The Company applies the provisions of ASC 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, as well as the contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations.
In addition, uncertain tax positions and tax-related valuation allowances assumed, if any, in connection with a business combination are initially estimated as of the acquisition date. The Company re-evaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date with any adjustments to the preliminary estimates being recorded to goodwill if identified within the measurement period. Subsequent to the end of the measurement period or final determination of the estimated value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect the income tax provision (benefit) in the consolidated statements of operations and could have a material impact on the results of operations and financial position.
Revenue Recognition
On January 1, 2019, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606) using the modified retrospective method. The Company generates revenue mainly from the sale of wireless connectivity solutions and technologies. A portion of revenue is generated from service agreements and data subscription plans with certain customers. The revenue generated from service agreements and data subscription plans is insignificant. The Company recognizes revenue to depict the transfer of control of the promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. Control transfers to customers either when the products are shipped to or received by the customer, based on the terms of the specific agreement with the customer. Revenue from NimbeLink's data subscription plans is recognized over the period of the subscription.
The Company records revenue based on a five-step model in accordance with ASC 606 whereby the company (i) identifies the contract(s) with the customer, (ii) identifies the performance obligations in the contract, (iii) determines the transaction price, (iv) allocates the transaction price to the performance obligation(s) in the contract and (v) recognizes the revenue when (as) the entity satisfies performance obligations. The Company only applies the five-step model when it is probable that the entity will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer.
9
For product sales, each purchase order, along with existing customer agreements, when applicable, represents a contract from a customer and each product sold represents a distinct performance obligation. The contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s revenue is recognized on a “point-in-time” basis when control passes to the customer. The revenue from service contracts is recognized either at a "point-in-time" or “over time” based on the terms and conditions in the contract. Revenue from data subscription plans are recognized “over time”.
The Company offers return rights and/or pricing credits under certain circumstances. A reserve for potential rights of return of $
The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract and type of customer and generally range from
The Company provides assurance-type warranties on all product sales ranging from one to two years. The estimated warranty costs are accrued for at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. The Company has recorded a warranty reserve of $
The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period as allowed under ASC 606. The Company has also elected to record sales commissions when incurred, pursuant to the practical expedient under ASC 340, Other Assets and Deferred Costs, as the period over which the sales commission asset that would have been recognized is less than one year.
There were
Shipping and Transportation Costs
Shipping and other transportation costs—expensed as incurred—were $
Fair Value Measurements
The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, accrued liabilities and deferred purchase price obligations approximate their fair values due to the short maturity of these instruments.
Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. The Company follows a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below:
Recently Issued Accounting Pronouncements
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In December 2019, the FASB issued ASU 2019-10, Effective Dates which updated the effective dates of adoption of ASU 2016-13. ASU 2016-13 is effective, for Smaller Reporting Companies, for annual and interim periods in fiscal years beginning after December 15, 2022. Companies are required to adopt the standard using a modified retrospective adoption method. The Company continues to evaluate the impact of the standard on its consolidated financial statements.
In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326), Targeted Transition Relief, which provides entities that have certain instruments within the scope of ASC 326-20, Financial Instruments-Credit Losses-Measured at
10
Amortized Cost, with an option to irrevocably elect the fair value option for eligible instruments. The effective date and transition methodology for this standard are the same as in ASU 2016-13. The Company continues to evaluate the impact of the standard on its consolidated financial statements.
In April 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification.The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.
Note 3. Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income per share is calculated by dividing net income by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted net income per common share using the treasury stock method.
The following table presents the computation of net income (loss) per share (in thousands except per share data):
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Three months ended March 31, |
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2022 |
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2021 |
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Numerator: |
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Net income (loss) |
$ |
( |
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$ |
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Denominator: |
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Basic weighted average common shares outstanding |
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Plus dilutive effect of potential common shares |
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Diluted weighted average common shares outstanding |
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Net income (loss) per share: |
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Basic |
$ |
( |
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$ |
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Diluted |
$ |
( |
) |
$ |
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Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in thousands):
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Three months ended March 31, |
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2022 |
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2021 |
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Stock options and restricted stock |
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Note 4. Business Combinations
On January 7, 2021, the Company entered into a Stock Purchase Agreement, by and among the Company, NimbeLink Corp., the sellers set forth therein (the Sellers) and Scott Schwalbe in his capacity as seller representative (the Purchase Agreement). NimbeLink is an industrial Internet of Things (IoT) company focused on the design, development and delivery of edge-based cellular connectivity solutions for enterprise customers. The acquisition of NimbeLink supports the Company's transition toward becoming a more system-level company and will play an important role in the Company's overall growth strategy to broaden market diversification, especially within the industrial IoT space.
Pursuant to the Purchase Agreement, at the closing on January 7, 2021, the Company acquired all of the outstanding stock of NimbeLink for an upfront cash purchase price of approximately $
11
Acquisition Consideration
The following table summarizes the fair value of purchase consideration to acquire NimbeLink (in thousands):
Cash |
$ |
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Deferred payments(1) |
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Contingent consideration(2) |
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Replacement options(3) |
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Total purchase consideration |
$ |
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(1)
(2)
(3)
Purchase Price Allocation
The following is an allocation of purchase price as of the closing date based upon an estimate of the fair value of the assets acquired and liabilities assumed by the Company in the acquisition (in thousands):
Cash |
$ |
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Accounts receivable |
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Inventory |
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Prepaids and other current assets |
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Property and equipment |
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Right of use assets |
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Other assets |
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Identified intangible assets |
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Accounts payable |
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( |
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Accrued compensation |
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( |
) |
Accrued expenses and other current liabilities |
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( |
) |
Short-term lease liabilities |
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( |
) |
Long-term lease liabilities |
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( |
) |
Deferred tax liabilities |
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( |
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Identifiable net assets acquired |
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Goodwill |
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Total purchase price |
$ |
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The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands):
Category |
Estimated life |
Fair value |
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Finite-lived intangible assets: |
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Market-related intangibles |
$ |
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Customer relationships |
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Developed technology |
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Covenants to non-compete |
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Indefinite-lived intangible assets: |
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In-process research and development |
N/A |
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Total identifiable intangible assets acquired |
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$ |
|
|
Assumptions in the Allocations of Purchase Price
Management prepared the purchase price allocations and in doing so considered or relied in part upon reports of a third party valuation expert to calculate the fair value of certain acquired assets, which primarily included identifiable intangible assets and inventory, and the portions of the purchase consideration expected to be paid to NimbeLink securityholders in the future, as described above. Certain NimbeLink securityholders that are employees are not required to remain employed in order to receive the deferred payments and
12
contingent consideration; accordingly, the fair value of the deferred payments and contingent consideration have been accounted for as a portion of the purchase consideration.
Estimates of fair value require management to make significant estimates and assumptions. Contingent consideration payable as of March 31, 2022 and December 31, 2021, was $
The goodwill recognized is attributable primarily to the acquired workforce, expected synergies, and other benefits that the Company believes will result from integrating the operations of the NimbeLink business with the operations of the Company. Certain liabilities included in the purchase price allocations are based on management’s best estimates of the amounts to be paid or settled and based on information available at the time the purchase price allocations were prepared.
The fair value of the customer relationships was determined using the multi-period excess earnings method (MPEEM). MPEEM estimates the value of an intangible asset by quantifying the amount of residual (or excess) cash flows generated by the asset and discounting those cash flows to the present. Future cash flows for contractual and non-contractual customers were estimated based on forecasted revenue and costs, taking into account the growth rates and contributory charges. The fair value of market-related intangible assets, developed technology, and in-process research and development (IPR&D) was determined using the Relief-from-Royalty method. The Relief-from-Royalty method is a specific application of the discounted-cash-flow method, which is a form of the income approach. It is based on the principle that ownership of the intangible asset relieves the owner of the need to pay a royalty to another party in exchange for rights to use the asset. Key assumptions to estimate the hypothetical royalty rate include observable royalty rates, which are royalty rates in negotiated licenses and market-based royalty rates which are royalty rates found in available market data for licenses involving similar assets. Developed technology will begin amortizing immediately and IPR&D will begin amortizing upon the completion of each project. During the three months ended March 31, 2021, all IPR&D projects were completed and transferred to developed technology, with a
The Company assumed liabilities in the acquisition which primarily consist of accrued employee compensation and certain operating liabilities. The liabilities assumed in these acquisitions are included in the respective purchase price allocations above.
Goodwill recorded in connection with the NimbeLink acquisition was $
Note 5. Cash and Cash Equivalents
The following tables show the Company’s cash and cash equivalents by significant investment category as of March 31, 2022 and December 31, 2021 (in thousands):
|
March 31, 2022 |
|
|||||||
|
Amortized |
|
Estimated fair value |
|
Cash and cash equivalents |
|
|||
Cash |
$ |
|
$ |
|
$ |
|
|||
Level 1: |
|
|
|
|
|
|
|||
Money market funds |
|
|
|
|
|
|
|||
Total |
$ |
|
$ |
|
$ |
|
|||
|
|
|
|
|
|
|
|||
|
December 31, 2021 |
|
|||||||
|
Amortized |
|
Estimated fair value |
|
Cash and cash equivalents |
|
|||
Cash |
$ |
|
$ |
|
$ |
|
|||
Level 1: |
|
|
|
|
|
|
|||
Money market funds |
|
|
|
|
|
|
|||
Total |
$ |
|
$ |
|
$ |
|
|||
13
Note 6. Inventory
Inventories are comprised of the following as of March 31, 2022 and December 31, 2021(in thousands):
|
March 31, 2022 |
|
December 31, 2021 |
|
||
Raw materials |
$ |
|
$ |
|
||
Finished goods |
|
|
|
|
||
Reserves |
|
( |
) |
|
( |
) |
Total Inventory |
$ |
|
$ |
|
||
As of March 31, 2022 and December 31, 2021, $
Note 7. Property and Equipment
Depreciation and amortization of property and equipment is calculated on the straight-line method based on the shorter of the estimated useful life or the term of the lease for tenant improvements and to
|
March 31, 2022 |
|
December 31, 2021 |
|
||
Computers and software |
$ |
|
$ |
|
||
Furniture, fixtures, and equipment |
|
|
|
|
||
Manufacturing and testing equipment |
|
|
|
|
||
Construction in process |
|
|
|
|
||
Leasehold improvements |
|
|
|
|
||
Property and equipment, gross |
|
|
|
|
||
Less accumulated depreciation |
|
( |
) |
|
( |
) |
Property and equipment, net |
$ |
|
$ |
|
||
Depreciation expense was $
Note 8. Intangible Assets
The following is a summary of the Company’s acquired intangible assets (dollars in thousands):
|
March 31, 2022 |
|
|||||||||
|
Weighted |
|
Gross |
|
Accumulated |
|
Net |
|
|||
Market related intangibles |
|
$ |
|
$ |
|
$ |
|
||||
Customer relationships |
|
|
|
|
|
|
|
||||
Developed technologies |
|
|
|
|
|
|
|
||||
Covenants to non-compete |
|
|
|
|
|
|
|
||||
Total intangible assets, net |
|
|
$ |
|
$ |
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
December 31, 2021 |
|
|||||||||
|
Weighted |
|
Gross |
|
Accumulated |
|
Net |
|
|||
Market related intangibles |
|
$ |
|
$ |
|
$ |
|
||||
Customer relationships |
|
|
|
|
|
|
|
||||
Developed technologies |
|
|
|
|
|
|
|
||||
Covenants to non-compete |
|
|
|
|
|
|
|
||||
Total intangible assets, net |
|
|
$ |
|
$ |
|
$ |
|
|||
14
E
|
Estimated future amortization |
|
|
2022 (remaining nine months) |
$ |
|
|
2023 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
Thereafter |
|
|
|
Total |
$ |
|
|
Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors. Amortization expense was $
Note 9. Accrued Liabilities and Other
Accrued liabilities and other is comprised of the following (in thousands):
|
|
|
|
|
||
|
March 31, 2022 |
|
December 31, 2021 |
|
||
Advanced payments from contract manufacturer |
$ |
|
$ |
|
||
Accrued expenses |
|
|
|
|
||
VAT payable |
|
|
|
|
||
Accrued income taxes |
|
|
|
|
||
Contract liabilities |
|
|
|
|
||
Other current liabilities |
|
|||||